The Federation of Hotel & Restaurant Associations of India (FHRAI) has voiced strong concern over unilateral changes introduced by global online travel platform Agoda, particularly its decision to alter commission structures and booking practices for Indian hotel partners.
According to FHRAI, Agoda’s newly introduced “Reference Sell Rate” (RSR) calculates commission on the total room rate inclusive of GST, contrary to existing agreements, which clearly stipulate commission should apply only to the pre-tax room rate. The association warned that this shift is placing undue financial pressure on hotel operators already navigating a fragile post-pandemic recovery.
The federation also raised questions over Agoda’s compliance with India’s GST framework. FHRAI alleges that Agoda has not only charged commission on the GST portion of the room tariff, which is prohibited, but has also avoided…
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